Obama’s latest scheme to ‘spread the wealth around’ comes in the form of promising free community college on one hand while double-taxing students who were responsible enough to plan ahead on the other.
The formidable organization released a detailed description of the $320 billion tax hike being proposed and noted that one of the ways in which Obama would like to pay for this “free” community college is to penalize those who planned accordingly.The report reads: (emphasis added)On Saturday night the White House leaked the major tax hike details of the president’s upcoming budget. The common theme is higher taxes on savings and investment, totaling $320 billion over the next ten years.“Democrats are demanding, yet again, tax increases on America. This never ends. When it comes to tax hikes Democrats are like a teenage boy on a prom date: they keep asking the same question different ways but always to the same point,” said Grover Norquist, president of Americans for Tax Reform.Here are the major tax increases in the President’s upcoming budget:1. Capital Gains Rate Hike: raises capital gains and dividends tax rate from 23.8% today (20% plus 3.8% Obamacare surtax) to 28% (including the Obamacare surtax).The capital gains tax has not been that high since President Clinton signed a rate cut in 1997.It would represent a massive hike in the rate since Obama took office. When he was sworn in, the rate was 15%. He proposes to nearly double it to 28% in the twilight of his administration.2. Stealth increase in the death tax rate from 40% to nearly 60%.Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent’s original basis. Almost always, the fair market value is higher.Under the Obama proposal, when you inherit an asset your basis will simply be the decedent’s original basis.Example: Dad buys a house for $10,000. He dies and leaves it to you. The fair market value on the date of death is $100,000. You sell it for $120,000. Under current law, you have a capital gain of $20,000 (sales price of $120,000 less step up in basis of $100,000). Under the Obama plan, you have a capital gain of $110,000 (sales price of $120,000 less original basis of $10,000).There are exemptions for most households, but this misses the larger point: the whole reason we have step up in basis is because we have a death tax. If you are going to hold an estate liable for tax, you can’t then hold the estate liable for tax again when the inheritor sells it. This adds yet another redundant layer of tax on savings and investment. It’s a huge tax hike on family farms and small businesses.It’s like a second death tax (the first one has a top tax rate of 40% and a standard deduction of $5.3 million/$10.6 million for surviving spouses). Conceivably, an accumulated capital gain could face a 40% death tax levy and then a 28% capital gains tax on what is left. Do the math, and that’s an integrated federal tax of just under 60% on inherited capital gains.3. “Bank Tax”A new 7 basis point (0.07%) tax on the liabilities (not assets) of the 100 or so U.S. firms with assets over $50 billion. This will obviously be passed along to these firms’ customers and employees, since businesses don’t pay taxes–people do.4. Tax Increase on Families Saving for CollegeUnder current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.5. Tax Increases in Retirement Plans and a New Employer MandateThere would be a new cap in the amount one could accumulate in the aggregate in all IRA and 401(k) type accounts of $3.4 million. After that, you can’t save any more new dollars. The idea is that this is enough to secure a $210,000 annual distribution in retirement, which the government apparently deems “enough” for a retiree.In addition, all employers with more than 10 workers and who do not have a 401(k) type plan would be mandated to set up payroll deduction Traditional IRAs for their employees. Also, part-time workers would have to be covered under retirement plans if they have been working someplace long enough. These two things are a new kind of employer mandate from Obama.
he really has no idea as to what he is doing?
He will break us
…ck. out the smirk,ugh!!!! :O
Why don’t Obama take his salary and pay the college tuitions because he isn’t doing anything for our country to get a salary.
Time to wake up people as this POS is NOT good for America and is continuing to destroy America
Congress needs to defund it !!!!!!!!!!!
Scum of the earth, how did he ever get elected , a lot of very stupid people out their.
President Obama is committed to a socialistic government with the understanding that elected officials are there to control the masses and responsible in determining what is deemed best for the common good of all. This practice has never worked and in my opinion creates corruption and is in opposition to the vision of the United States of America. Presently we are being controlled and are no longer the land of the free. My hope is that all my Liberal and Conservative friends will come together and focus on correcting this situation and stop focusing on simply stating what is obvious. Simple and quick example is Obama Care. As a leader of free people you can not create a law and then absolve yourself from it. This is, in my opinion, is the beginning of a Dictatorship. Presently our elected officials do not serve the people but enact laws to control the people. I pray our time has not passed.
DEFUND EVERYTHING…….its all a fraud and cover up for his Muslim agenda. Retired Army General said we need to replace everyone in the white house ASAP so we can turn this country back around. POTUS has put America in a very vulnerable state. We are WIDE OPEN for attack, and he put us there. He downsized the military, he gives tax payer dollars to terrorist countries, he uses executive power because he needs money for his agenda, increased taxes on the rich because the middle class does not have that kind of money and making it seem like he’s doing the MS a big favor……He sees the genocide, but still has not yet declared that Islam are radical terrorists. He did not represent the citizens of the USA in the march against terrorism in Paris…..He has already admitted that he is Muslim. He has also declared “America is no longer a Christian nation. America is a Muslim nation.” Wake up America, he doesn’t care about us. He’s got plans to convert America to become a Muslim nation. Army General said, “if I were in charge I would just say 2 words, “destroy Isis.” Wake up, please wake up. =)
OBAMA can always come up with a scheme to take money away from the middle class! He was taught in college that there aren’t enough rich people to get the money they want and the poor don’t have money so they have to make the middle class think the government is doing things for them as they take their money! The ultimate goal is 1% rich ruling class and 99% poor worker class!